Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Venture capital industry needs to address diversity failings

07 August 2023
Issue: 4900 / Categories: News

Venture capital is a risky but crucial form of investment for innovative companies with high growth potential. The venture capital tax reliefs are globally competitive and a key draw for investors but there are areas of concern according to a report from the House of Commons’ Treasury Committee.

On diversity the evidence presented to the committee showed that businesses with all-female founders received just 2% of all venture capital funding in 2021 while less than 2% went to black and ethnic minority-led businesses. MPs called for the Treasury to make collecting and publishing the diversity statistics of venture capital firms and their investments a requirement for eligibility.

Further despite previous calls from the committee the Treasury has not provided clarity on when reliefs with expiry dates will be extended. For example the enterprise investment scheme and venture capital trusts have statutory sunset...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon